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Mathematics, 06.12.2020 09:20 nenaa29
Penny attended a four-year state college. She took out a student loan to pay for her tuition and room & board for the four years she was attending the college. Her tuition fees were $6,970 per year, and the cost of her room and board was $11,320 per year. Now that she has graduated, she will have to start paying back her loan. Fortunately, Penny has a grace period of one year before she has to start paying back the loan. Her loan details are as follows: there is a fixed-rate interest of 4.5% and the interest compounds each month. During her one-year grace period, interest will accrue on the loan, so that when she has to start paying the loan back she will owe more than what she owes now. Her goal is to be able to pay off the loan in 10 years.
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